Activision-Blizzard tells investors recent redundancies "could negatively impact [its] business"
"The implementation of this restructuring plan may also be costly and disruptive to our business."
Following rumours, then confirmation, that Activision-Blizzard had cut 8 per cent of its global workforce in spite of record revenue, the company's annual Form 10-K report - published on 28th February - acknowledges to its investors that the consequences of these layoffs "could negatively impact [its] business".
The statement also says that the "actual savings" from the layoffs "may vary materially based on factors such as local labour regulations, negotiations with third parties, and operational requirements", admitting "estimates and assumptions are also subject to significant economic, competitive and other uncertainties, some of which are beyond our control" and that making 800 people redundant offers "no assurance that our business will be more efficient or effective than prior to implementation of the plan, or that additional restructuring plans will not be required or implemented in the future".
"In February 2019, we announced a restructuring plan under which we plan to refocus our resources on our largest opportunities and to remove unnecessary levels of complexity and duplication from certain parts of our business," Activision-Blizzard said via the 306-page statement (thanks, PC Games Insider).
"While we believe this restructuring plan will enable us to provide better opportunities for talent, and greater expertise and scale on behalf of our business units, our ability to achieve the desired and anticipated benefits from the restructuring plan within our desired and expected timeframe is subject to many estimates and assumptions, and the actual savings and timing for those savings may vary materially based on factors such as local labour regulations, negotiations with third parties, and operational requirements. These estimates and assumptions are also subject to significant economic, competitive and other uncertainties, some of which are beyond our control.
"Further, there can be no assurance that our business will be more efficient or effective than prior to implementation of the plan, or that additional restructuring plans will not be required or implemented in the future. The implementation of this restructuring plan may also be costly and disruptive to our business or have other negative consequences, such as attrition beyond our planned reduction in workforce or negative impacts on employee morale and productivity, or on our ability to attract and retain highly skilled employees. Any of these consequences could negatively impact our business."
Activision-Blizzard also confirmed it has set aside $150m to compensate former employees affected by the layoffs.